High-speed Data Converter Market Size, Share and Growth Analysis

Updated on : October 23, 2024

High-speed Data Converter Market Size & Growth

The High-Speed Data Converter Market size was valued at USD 3.0 billion in 2022 and is projected to reach USD 4.3 billion by 2028; growing at a CAGR of 6.4% during the forecast period from 2023 to 2028.

potential use of high-speed data converters in developing advanced 5G infrastructure, rapid adoption of IoT devices and data consumption creates lucrative opportunities whereas integration of RF data converters into FPGA and system-on-chip (SoC), and high development cost are major restraint for the growth of the high-speed data converter market.

High-speed Data Converter Market Size Forecast to 2028

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High-speed Data Converter Market Trends and Dynamics:

Driver: Rising demand for test & measurement solutions by end users

Advanced modulation and antenna techniques have improved the data services and voice quality in  communications sector. Various networking components such as routers, repeaters, and connectors  are thoroughly tested which requires test & measurement instruments, such as RF signal analysis equipment,  logic analyzers, signal generators, cable testers, and network analyzers. These equipments widely uses analog-to-digital converters and digital-to-analog converters for signal conversions. This increasing use of analog-to-digital converters and digital-to-analog converters in communication testing equipment is driving the high-speed data converter market. Similarly in industrial sector, the test & measurement equipments are used to measure and monitor various parameters such as quality of product and safety, current, voltage, frequency signal, pressure, and temperature by mobile device manufacturers, network equipment manufacturers and telecom service providers. Thus, the rising demand for test & measurement equipment drives the growth of the high-speed data converter market.

Restraint: High development cost

The development of high-speed data converter is a complex and expensive process, requiring significant investments in research and development. This is due to the need for advanced semiconductor technologies, sophisticated circuit design techniques, and rigorous testing and characterization methodologies to ensure high performance and reliability.

High-speed data converters require the use of cutting-edge semiconductor technologies, such as FinFETs and advanced CMOS processes, which are expensive to develop and manufacture, designing high-speed and high-performance data converters is a complex and time-consuming process, requiring expertise in analog and digital circuit design, as well as signal processing and error correction techniques. High-speed data converters must undergo rigorous testing and characterization to ensure they meet stringent performance and reliability requirements. This testing involves specialized equipment and expertise, adding to the overall development costs.

The high development costs associated with high-speed data converters pose a significant restraint for the market, as they can hinder innovation and limit market entry for new players. However, as the demand for high-speed data conversion continues to grow, advancements in semiconductor technologies and design methodologies could lead to more cost-effective development processes, opening up new opportunities for the high-speed data converter market.

Opportunity: Rapid adoption of IoT devices and data consumption

IoT innovation is mostly focused on digital technology. From robust cloud servers running software to ever-smarter, edge-operating appliances in homes, businesses, and personal electronics. High-speed data converters are essential when working with digital systems interacting with real-time signals. These digital systems must be able to read real-world/time signals for the rapidly growing Internet of Things to reliably transmit vital information. Smart devices such as Alexa, smart wearables, and advanced cars constantly interact with users to provide critical information and perform voice commands. Since the adoption of devices is increasing rapidly, the need for high-speed data converters is also increasing as IoT devices require analog and digital data converters to communicate effectively with users. The exponential rise in data consumption, and the rising usage of IoT devices, are leading to the increased need for analog-to-digital converters (ADCs) and digital-to-analog converters (DACs), which provides lucrative market growth opportunities.

Challenges: Development of low-power consumption high-speed data converters

The high-speed data converter is an electronic circuit that converts the data from analog sensor nodes to the digital domain. During signal conversion, the high-speed data converter consumes large amounts of power. Several types of portable battery-operated equipment have limitations in terms of power capacity. It is one of the key challenges to providing greener designs of high-speed data converters with minimum power consumption.

The Development of low-power consumption high-speed data converters is a challenging task due to the inherent trade-off between power consumption and performance. High-speed data converters typically operate at high sampling rates and resolutions, which demand significant power to achieve the desired performance metrics. However, reducing power consumption is crucial for extending battery life in portable devices, minimizing heat generation in densely packed electronic systems, and improving overall energy efficiency. The packaging of high-speed data converter is critical for protecting the delicate circuitry and for providing electrical connections to the outside world. The packaging must also meet the environmental requirements of the application. Also, these data converters must be rigorously tested to ensure that they meet their performance specifications.

High-speed data converter market map:

High-speed Data Converter Market Segmentation

By frequency band, the >1 GSPS segment in the high-speed data converter market is expected to grow at the highest growth rate during the forecast period

The high-speed data converter market with a frequency band of >1 GSPS is expected to grow at the highest growth rate during the forecast period from 2023 to 2028. This is fueled by the rapid development of 5G and future generations of wireless communication, artificial intelligence and machine learning, high-performance computing, and advanced radar and imaging systems.

Communications segment account for the largest market share of the high-speed data converter market, by application, during the forecast period

The communications application is expected to hold the largest share of ~65% of the high-speed data converter market in 2022 and is expected to retain its position during the forecast period. Infrastructure manufacturers will likely focus more on research and development to create new and innovative products to fulfill the rising demand for high-speed communication channels. The upcoming 5G infrastructure is anticipated to create opportunities for the providers of high-speed data converters.

High-speed Data Converter Industry Regional Analysis

Asia Pacific region account for the largest market share of the high-speed data converter during forecast period

The high-speed data converter industry in Asia Pacific holds the largest market share and is expected to retain its position during the forecast period from 2023 to 2028, growing at the highest growth rate. Asia Pacific has a strong demand for communication systems, consumer equipment, and white goods. Furthermore, increasing industrial automation would enable the requirement of high-speed data converters integrated into sensor-based systems. Major high-speed data converter providers in the regions are Renesas Electronics Corporation (Japan), ROHM CO., LTD. (Japan), Corebai Microelectronics (Beijing) Co., Ltd. (China), and Atom Semiconductor Technologies Limited (China)

High-speed Data Converter Market by Region

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Top High-speed Data Converter Companies - Key Market Players

• Texas Instruments Incorporated (US);
• Analog Devices, Inc. (US);
• Infineon Technologies AG (Germany);
• Microchip Technology Inc. (US);
• STMicroelectronics (Switzerland);
• Teledyne Technologies Incorporated (US);
• ROHM CO., LTD. (Japan);
• Renesas Electronics Corporation (Japan);
• Synopsys, Inc. (US);
• ADSANTEC (US);
• IQ-ANALOG (US);
• Omni Design Technologies, Inc. (US);
• Corebai Microelectronics (Beijing) Co., Ltd. (China);
• Atom Semiconductor Technologies Limited (China);
• Data Device Corporation (US);
• Antelope Audio (US);
• Agile Analog Ltd. (UK);
• Rio Systems (Israel) are some key players operating in the High-speed Data Converter Companies.

High-speed Data Converter Market Report Scope

High-speed Data Converter Market Highlights

This research report categorizes the high-speed data converter market share based on Type, Frequency Band, Application, and Region.

Recent developments in High-speed Data Converter Industry

• In November 2023, Synopsys, Inc. (US) and the Indian Institute of Technology Bombay (IIT Bombay) (India) announced the inauguration of the Synopsys Semiconductor Lab for Virtual Fab Solutions at IIT Bombay as part of the Department of Electrical Engineering under the Center for Semiconductor Technologies (SemiX). With the semiconductor industry facing a major talent shortage to meet anticipated future semiconductor demand, SemiX was established at IIT Bombay to provide an interdisciplinary platform for industry-focused research and education, entrepreneurship, and policy studies.
• In November 2023, ROHM CO., LTD. (Japan) announced the acquisition of the assets of Solar Frontier’s former Kunitomi Plant in Japan, based on its basic agreement signed with SOLAR FRONTIER K.K. (Japan). The plant will be operated by LAPIS Semiconductor Co., Ltd. (Japan), a subsidiary of the ROHM Group (Japan), as its Miyazaki Plant No. 2. During 2024, it aims to begin operations as the Group's primary production site for SiC power devices.
• In September 2023, Foxconn (Taiwan) partnered with STMicroelectronics (Switzerland) to establish a 40-nanometer chip plant in India. 

Critical questions answered by this report:

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